I. The basic provisions of the scope of taxation of the construction industry
(1) The scope of taxation under the construction industry tax item
The scope of taxation under the construction industry tax item is the provision of construction, repair, installation, decoration, and other engineering work within the territory of the People's Republic of China*** and other engineering work.
Construction: refers to the engineering operations of new construction, alteration and expansion of various buildings and structures. Including a variety of equipment or pillars connected with the building, operating platforms, kilns and metal structure engineering operations. Repair: refers to the building, structure repair, reinforcement, maintenance, improvement, so that it restores the original value of the use or to extend its use of construction operations.
Installation: refers to the production equipment, power equipment, lifting equipment, transportation equipment, transmission equipment, medical laboratory equipment and other equipment, assembly, placement of engineering operations, including the equipment connected to the workbench, ladders, railings installed engineering operations and the installation of equipment, insulation, anticorrosion, heat preservation, painting and other engineering operations.
Decoration: refers to engineering operations to decorate a building or structure to make it beautiful or for a specific purpose.
Other engineering operations: refers to a variety of engineering operations other than construction, repair, installation and decoration, such as agency telecommunication projects, dredging, drilling (drilling), demolition of buildings, water conservancy projects, road construction, land leveling, scaffolding, blasting and other engineering operations.
(2) Several specific provisions of the scope of taxation in the construction industry
Based on the basic provisions of the scope of taxation in the construction industry, the current tax law has made some specific provisions for the following specific items. It should be pointed out that the specific provisions mentioned here refer to the specific determination of some things that are easy to diverge in understanding according to the basic provisions.
1, on behalf of the telecommunication project
2, well-drilling project
3, the problem of work in lieu of food
4, internal engineering issues (not required by law to apply for the tax registration of the internal organization)
Two, special provisions of the scope of taxation in the construction industry
(a) on the self-built behavior of the tax
the so-called self-built behavior
the so-called self-building behavior According to the basic principle of business tax, self-construction is not taxable because it does not provide taxable services to the outside world, and therefore its construction is not taxable.
(2) Dredging
Dredging is the business of removing siltation and deepening slots in waterways, ports, wharves and reservoirs by manual or mechanical means in order to smooth the flow of water or improve the navigational conditions.
(C) on the installation of cable TV
Cable TV installation fee, refers to the cable TV station for the user to install cable TV receiving device, a one-time installation fee charged to the user, also known as the initial installation fee. According to the provisions of the current business tax tax annotations, this initial installation fee belongs to the scope of taxation of the construction industry.
(4) About Gas Initial Installation Fee
Cai Shui [2003] No. 16, "Gas companies and units producing or selling goods or providing VAT taxable services, when selling goods or providing VAT taxable services, collect the collection fee (including piped-gas collection fee (initial installation fee)) and handling fee from the buyer on behalf of the relevant departments, The collection fees (including piped gas collection fee (initial installation fee), handling fee, payment on behalf of the purchaser, etc., belong to the out-of-the-value-added-tax charges, and shall be subject to value-added tax, not business tax". Guo Shui Han [2002] No. 105 replied to Guangdong Local Taxation Bureau, "Piped gas capitalization fee (initial installation fee) is used for the construction of piped gas projects and technological transformation, and is a one-time fee charged to the users in the installation process. According to the current business tax policy, the piped gas capitalization fee (initial installation fee), should be based on the construction industry tax items levied business tax."
(E) About greening project
Greening project is often connected with construction project, or is itself a part of a construction project. For example, greening and land leveling is closely linked, and land leveling itself belongs to the construction industry tax items in the "other engineering operations", so the greening project belongs to the scope of taxation of the construction industry. Attention: Contracting the whole landscaping project is subject to construction business tax according to the full price received. No deduction is allowed for raw materials such as saplings and flowers purchased for greening.
(F) The construction and installation works contracted by the engineering contracting company are taxed under what tax item
The construction and installation works contracted by the engineering contracting company, that is, the engineering contracting company signs a contract with the construction unit for the construction and installation works, regardless of whether it is involved in the construction or not, it should be taxed under the tax item of "construction industry". Business tax. Engineering contracting company does not sign a contract with the construction unit to contract construction and installation project contract, is only responsible for the organization and coordination of the project business, the engineering contracting company's business by the "service industry" tax items levied business tax. (Guo Shui Fa [1995] No. 156)
(VII) on national defense projects and construction projects of the military system
According to the provisions of Cai Shui [2001] No. 187, the units and individuals contracted for the national defense projects and the military system of the construction and installation projects of the income obtained from January 1, 2001, resumed the levy of business tax.
(H) Taxation on Building Demolition and Land Leveling
According to the provisions of Guo Shui Han [2009] No. 520, in the process of taxpayers being entrusted to carry out building demolition and land leveling and to pay the demolition and relocation compensation to the original land-use right holders on behalf of the entrusted parties, the income derived from the labor services of building demolition and land leveling shall be assessed in accordance with the "Construction Industry" and the "Business Tax". The business tax shall be paid under the tax item of "Construction Industry".
Third, the construction industry business tax and value-added tax scope of the division of the problem
The construction business tax issues: capital construction units and engaged in construction and installation business set up near the factory. Workshop production of prefabricated cement components. Other components or building materials used in the construction work of the unit and the enterprise shall be subject to value-added tax at the time of transfer for use. However, for the prefabricated components manufactured at the construction site, which are directly used in the construction work of the unit and the enterprise, business tax shall be levied and no value-added tax shall be imposed.
(1) The division of repair of immovable property and repair of tangible movable property
According to the provisions of the current turnover tax system, the repair of immovable property belongs to the repair business in the construction industry tax item of the business tax, while the repair of tangible movable property belongs to the repair and repair business in the scope of the value-added tax (VAT).
(2) industrial enterprises for the user to install self-produced products tax issues
In accordance with the rules of Article VII, "the provision of construction services at the same time as the sale of self-produced goods," the provisions of the treatment, should be separately accounted for the turnover of taxable services and sales of goods, the turnover of taxable services to pay the turnover tax, sales of goods do not pay business tax; the turnover of taxable services to pay business tax. The turnover of taxable services to pay turnover tax, sales of goods do not pay business tax; not separately accounted for by the competent tax authorities to approve the turnover of taxable services.
(3) Construction industry and other tax items of business tax division
Taxpayers who implement general contracting for construction, design and other businesses shall be taxed according to the tax items of the construction industry and the service industry, respectively. (If the design labor service is subcontracted to other units, the expenditure of its subcontracting fee can be deducted from the amount of its general contracting.) Subcontracting design services of the taxpayer, its design services and the price charged to the other party, according to the "service industry" tax items in the "design" project business tax, and by the taxpayer to pay in the location of their institutions.